How to invest with a disciplined approach when markets are soaring? MintGenie explains
benchmarks. “Retail investors should not concern themselves too much with market levels," advises Mayank Bhatnagar, Chief Operating Officer, FinEdge about benchmarks soaring. “Today with markets reaching new highs, there is a need for retail investors not to get worried about being left out, but to maintain a suitable asset allocation to equity," says Anil Ghelani, Head-Passive Investment and Products, DSP Mutual Fund, who advises that it would be best not to make any big changes by buying a lot more or at the same time booking gains and sitting on cash.
“Markets are not linear with peaks and bottoms getting formed in the journey," says Shaily Gang, Head- Products, Tata Asset Management about how benchmark watching does not convey the whole story. Thus, in the last 30 years, Nifty 50 witnessed temporary declines of more than 10-20% every alternate year and temporary declines of more than 30% once in 8 to 10 years, yet clocking a CAGR (Compounded Annual Growth Rate) of a little over 13%. It is practically impossible to gauge when the market peaks and bottoms will be formed, note experts.
Bhatnagar advises that investors should continue investing in equities in a systematic and disciplined manner, according to a clearly defined goal-based plan. However, it’s crucial for investors to understand risks and rewards, as well as have the right expectations before investing. More often than not, investing journeys get derailed because investors do not take the time to properly set expectations and understand what they are getting into.
In the end, stock markets reward patience and discipline, experts say. So, you have decided to take the equity plunge despite equities being at elevated levels. Experts guide you on how to go about
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